Florida Special Needs Trusts: Advantages & Disadvantages
Setting up a special needs trust (SNT) can offer crucial support and care for individuals with disabilities. However, it is important for loved ones in Florida to understand both the advantages and disadvantages of a Florida special needs trust before deciding if it is the right option for them.
What Exactly Is a Special Needs Trust
A special needs trust is a specialized trust that is created to manage and hold assets for the benefit of an individual with disabilities. The purpose of this trust is to improve the individual’s quality of life while ensuring that they remain eligible for government assistance programs, including Supplemental Security Income (SSI) and Medicaid.
A special needs trust also becomes particularly beneficial if a disabled individual may inherit assets. This is because if they were to hold on to them directly, they could jeopardize their chances of being eligible for government benefits.
Special Needs Trust: The Advantages
While a special needs trust can play a critical role in assisting families with planning for the future, there are other compelling reasons to consider establishing this trust. For instance:
- A Special Needs Trust (SNT) provides a way to handle a person’s assets to ensure they are used wisely and in the individual’s best interest.
- An SNT can be used to supplement government assistance programs and enhance their quality of life by providing them with additional resources.
- An SNT is very flexible, which allows loved ones to prepare the trust’s terms in a way that can help with unique circumstances.
- An SNT can protect individuals with disabilities from potential exploitation.
Special Needs Trust: The Disadvantages
Although a special needs trust can be very beneficial, it is also important to note some of the disadvantages that may arise with these trusts.
- Creating a proper special needs trust can be a complex process.
- The terms of a special needs trust are irrevocable, which can limit the beneficiary’s control over the assets in the future.
- Depending on the structure of the special needs trust and the assets involved, tax issues could arise.
However, when you work with an experienced Florida special needs trust attorney, these legal professionals can help you through this process and try to minimize the impact of these disadvantages.
Contact Carryl Law Firm Today To Learn More About Special Needs Trusts in Florida
A special needs trust is an estate planning tool that offers countless benefits for individuals with disabilities and their loved ones. Not only do these trusts help to preserve eligibility for government benefits, but they can also supplement those benefits and provide asset protection. However, determining whether a special needs trust is the best option for your family’s unique circumstances may require some research, primarily because of some of the disadvantages involved.
If you have any questions about special needs trusts or would like to discuss these trusts in more detail and what is required to create one in Florida, contact the Carryl Law Firm by calling us at 954-882-4386 today.